股权融资外文翻译文献.docx

1、股权融资外文翻译文献文献信息：文献标题：Equity Financing and Financial Performance of Small and Medium Enterprises in Embu Town, Kenya（肯尼亚恩布镇中小企业股权融资与财务绩效研究）国外作者：IK Njagi，ME Kimani，SN Kariuki文献出处：International Academic Journal of Economics and Finance, 2017,2(3):74-91字数统计：英文2793单词，15064字符；中文4590汉字外文文献：Equity Financing

2、and Financial Performance of Small and Medium Enterprises in Embu Town, KenyaAbstract Capital structure comprise of a mix of debt and equity. Managers used various combinations of debt and equity that increases the net worth of business at the same time reduces the cost of obtaining finance. Financi

3、al decisions affected the financial performance of SMEs but vary from one firm to another. This is due to the limited access to finances and ability of the manager to fully utilize the resources available. SMEs are of significance to the economic development of any state regardless of the developmen

4、t status. Despite their importance SMEs are characterized with slow growth rate and three out of five SMEs fail in their first three years of operation. The continued poor performances have led to decline in growth and eventually death of the SMEs. The growth of the SMEs highly depended on the inves

5、tment decisions made by the entrepreneurs and lack of access to finances has created financial gaps that have fueled the challenges that SMEs face. The study therefore analyzed the effect of equity financing on financial performance of SMEs in Kenya. The study revealed that SMEs had greater preferen

6、ce for contribution from friends and ploughing back profit as a source of equity finance. Angel investors as a form of equity financing has not gained acceptance as a source of finance. From the study it was evident that equity finance had a positive relationship to financial performance of the SMEs

7、. Key Words: capital structure, equity, financial performanceINTRODUCTIONThe significance of Small and Medium Enterprises in Kenya was first acknowledged in the International Labor Organization report on Employment, Income and Equity in Kenya in 1972. The report underscored SMEs as an engine for emp

8、loyment and income growth. SMEs create about 85 percent of Kenyas employment Government of Kenya (Gok, 2009).Despite the role played by SMEs, the World Bank Report (2010) suggests that one of the major causes of SMEs failure is limited access to finances. Business organizations aim to improve on the

9、ir production and operations efficiency and to increase their profit margin. A number of factors may influence efficiency and effectiveness of business operations including capital structure. The capital structure of a firm is a mix of debt and equity that a firm uses to finance business. The financ

10、e manager is therefore concerned with a capital structure that increases the profit margin at least cost (Ehrhardt & Brigham, 2013). According to Chepkemoi (2015) earlier studies on general small firm capital structure have presupposed small and medium sized enterprises to (predominantly) act in suc

11、h a way as to maximize their financial wealth. A consequence of this presupposition is that, these studies have assumed that SMEs, in general, desire substantial growth and consequently have a desire for external finance.Academic research has documented that there are differences in financing patter

12、ns between SMEs and large firms and analyzed possible causes of these differences (Elaine, Angelo, Ana & Ricardo, 2005; Howorth, 2001; Mac & Lucey, 2010). The existence of fixed costs due to external financing, smaller firms choose to refinance less frequently than larger firms because they are more

13、 affected by these fixed costs in relative terms. Hence, small firms choose to operate at a higher leverage level at a refinancing moment to compensate for less frequent rebalancing. This argument explains why smaller firms, if they have some debt, are more levered than larger firms. In addition, as

14、 the time period between restructurings is longer for small firms, on average, they have lower leverage ratios (Chepkemoi, 2013).Capital structure represents the proportionate relationship between the different forms of long term financing (Varaiya, Kerin & Weeks, 2007). Making appropriate decision

15、on the financing option may look simple, but sometimes it require time. Management is often faced with dilemma on whether to obtain funds from internal sources (retained earnings) or external sources which include loans from financial institutions, trade credit, and issuance of equity shares. The cr

16、eation of a capital structure in any organization influences the governance structure of a firm which, in turn, has direct impact on strategic decisions made by the managers (Mwangi, Makau & Kosimbei, 2014).Management has numerous capital structure choices that they may adopt at their discretion. The choice of the type of capital structure to be adopted may not mean value maximization but may be for the protection of the management self-interest, especiall